Which One of the Following Statements Is True for the Various

question 68

Multiple Choice

Which one of the following statements is true for the various management attitudes?

• A)An organization characterized by the geocentric attitude incurs high travel and training expenses.
• B)The ethnocentric attitude reflects the belief that because foreign managers are closer to foreign organizational units,they understand them better.
• C)The ethnocentric attitude is generally thought to be the most appropriate for managers in multinational corporations.
• D)The polycentric attitude often causes resentment toward the home country within the foreign society.
• E)Managers with a geocentric attitude stereotype home-country management practices as sound and reasonable and foreign management practices as faulty and unreasonable.

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Definitions:

Break-even Level

The juncture where overall expenses match the total income, leading to neither a net profit nor a loss.

M&M Theory

Modigliani and Miller's theory positing that in an ideal market, a company's value is unaffected by how it is financed, whether through debt or equity.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which funds its overall operations and growth.

Total Cash Flows

The total sum of cash and cash-equivalents moving into and out of a company.